The EU begins to crack down on Nike’s online anti-competitive behavior. (CLICK HERE TO FIND OUT WHAT HAPPENED NEXT)

As of May 10 2017, the European Commission has started leading several investigations on Nikes online business model in Europe. The investigations concluded that even though the internet and online shopping have brought a growth in trade and have increased competition in many cases, it has also prompted firms like Nike to rethink their product distribution plans. Nike was effectively caught compete ting with private distributors of Nike products by limiting their access to Nike products, as in artificially making it more difficult for private distributors to cope with high demand. They were also caught using cross border trading schemes for their own Nike outlets, while restricting CBT for consumers who bought the product online, where they exploit countries will lower business tax to maximize profit and sell their products at an uncompetitive price while forcing the individual consumers in to have to purchase the price that Nike has chosen for their countries market. The European Commission is concerned that consumers may have had less choice and paid higher prices for products because of restrictions on cross-border and online sales imposed by Nike.

 

SOURCE:

https://www.webinterpret.com/au/blog/cross-border-trading-opportunities-challenges/

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